Los Angeles, CA – August 26, 2009 – The funding tap keeps-a-dripping for music-related startups, another sign of economic recovery. The latest beneficiary is New York-based Rightsflow, a company focused on managing the tricky terrain of mechanical licensing compliance and accounting. According to details tipped Wednesday, the company just rallied a $1.5 million, Series A round from Originate Ventures.

Indeed, this is not the flashiest part of the business, but Rightsflow has been profitable since 2007. Now, the company is aggressively expanding, and looking to step on the toes of the Harry Fox Agency (HFA). That promises to be a tough battle, especially as bread-and-butter mechanicals start to slide alongside the shrinking CD.

Perhaps all-the-better for the upstart, and the new playing field includes online, mobile, and physical formats. “The service we have pioneered creates a single, cost-effective channel through which rights-holders and companies that sell or distribute music can connect, ensuring proper licensing, accurate accounting and timely payment of royalties,” said Rightsflow founder Patrick Sullivan.

The expansion plan also includes easy, one-off licensing services for smaller acts, a launch that could boost broader industry earnings. The Rightsflow client roster currently includes Imeem, E1, Muzak, INgrooves, CD Baby, IODA, X5 Music Group, Zebralution, Disc Makers, Deezer, Cooking Vinyl/Rocket Science, IRIS, Liberation and Artspages.